Bank Deals Weekly Summary for July 4, 2009

Comments (2)
Jul 4, 2009 - 4:27 PM by Ken Tumin

Hot Deals, Quick Link for Rates, Recap of this week's posts

Happy 4th of July! The week ended with a bang with 7 bank closures on Thursday, and six of those were in Illinois. This was the most bank closures in one day since the start of the financial crisis. However, it's not quite as bad as it sounds. Six of the Illinois banks were all controlled by one family (see post).

Savings Accounts

There was some good news this week. EverBank raised the ongoing rate of its money market account from 1.65% to 1.85% APY. The top tier rate of the checking account was also increased from 1.65% to 1.85% APY. The 3-month promo rate remains the same at 3.01% (see post).

Discover Bank launched a new online savings account, and the rate is a competitive 2.00% APY for a minimum balance of $500. They still have the old money market account which offers check writing. Unlike the MMA, the savings account doesn't have check writing or ATM access. However, it has a higher rate without all the tiers and without any monthly fees. I assume the lack of check writing makes the account less costly to Discover which allows them to offer higher rates. Many banks have added savings accounts like this. Recent examples include Capital One, Ally Bank (formerly GMAC Bank) and Bank of Internet.

Unfortunately, there continues to be more bad news with many banks and credit unions cutting rates. The long list of rate cuts is below.

Rate Hikes:
  1. Discover Bank Savings - 2.00% (new, only had MMA before)
  2. EverBank MMA standard rate - 1.85% (was 1.65%)
Rate Drops:
  1. Centennial Bank Savings - 2.02% $50K+ (was 2.28%)
  2. Alliant CU Savings - 2.00% (was 2.25%)
  3. United Central Bank MMA - 1.95% $5K-$75K (was 2.39%)
  4. Savings Square Savings - 1.90% (was 2.00%)
  5. Nationwide MMA - 1.90% (was 2.00%)
  6. Ally Bank MMA - 1.80% (was 1.85%)
  7. EBSB Direct Savings - 1.75% $50K+ (was 2.02%)
  8. Alliant CU Checking - 1.75% (was 2.00%)
  9. AIG Bank MMA - 1.86% $10K+ (was 1.91%)
  10. Intervest MMA - 1.70% $2.5K+ (was 1.72%)
  11. ING Direct Savings - 1.40% (was 1.50%)
Certificate of Deposit Rates

As I had feared, Pentagon Federal Credit Union made substantial rate cuts on their 3-, 4- and 5-year CDs at the start of July. The 3-year CD rate had the biggest drop falling from 3.50% to 2.78% APY. I'm not sure when was the last time PenFed had a 3-year CD rate this low. On a positive note, NASA Federal Credit Union came out with a July CD special that includes a 4.00% APY 50-month CD. Like PenFed, anyone can join NASA FCU via an association membership (see post).

Two small banks are offering very competitive rates on their new online CDs. Franklin Synergy Bank is offering a 2.78% APY 11-month CD and Broadway Federal Bank is offering a 3.05% APY 24-month CD. As you might expect of small banks launching an internet product, the application process isn't smooth. A reader reported that Franklin Synergy Bank doesn't allow ACH funding, and a couple of readers reported problems with Broadway's ACH funding.

Below are some of the best CD deals that are still active.

Best Nationwide CD Deals as of 7/04/09: Also listed are a few savings accounts with rate guarantee periods. The full list of nationwide CD rates is farther down.
  1. 3.01% 3-mo money market/checking promo at EverBank (account review)
  2. 2.75% 3-mo savings account promo at ProvidentNJ Direct (account review)
  3. 2.25% 3, 6, 9 & 12-mo CDs at TotalBank (account review)
  4. 2.50% 4-mo CD at Danvers Bank (account review)
  5. 2.78% 11-mo CD at Franklin Synergy Bank (account review)
  6. 2.60% 12-mo CD & 2.75% 18-mo CD at Southeast Financial CU (account review)
  7. 2.35% 12-mo Add-On CD at Amboy Direct (account review)
  8. 2.30% 12-mo & 2.40% 18-mo Flex CD with Liquid Features at Wilshire State Bank (account review)
  9. 2.00% 12-mo Liquid CD at OneWest/IndyMac Bank (account review)
  10. 3.05% 24-mo CD at Broadway Federal Bank (account review)
  11. 4.00% 50-mo CD at NASA FCU (account review)
  12. 4.00% 59-mo CD at US Bank (account review)
Best Local CD Deals as of 7/04/09: Some of the best CD deals are from banks and credit unions that don't offer accounts nationwide. Refer to the recap section and the state index section to find all the recent local deals. Here are some of the best deals to note.
  1. 2.50% 6-mo CD ($25K max) at STC Capital Bank in Chicago (account review)
  2. 2.50% 7-mo CD at Central Bank in Tampa, FL (account review)
  3. 2.50% 7-mo CD & 3% 13-mo CD at Members First CU in NH/MA (account review)
  4. 3.00% 9-mo CD at Bartow County Bank in GA (account review)
  5. 3.00% 9-mo CD at Union Savings Bank in IN (account review)
  6. 3.05% 12-mo CD at Self Reliance New York FCU (account review)
  7. 2.84% 12-mo CD at Fort Bragg FCU in NC (account review)
  8. 2.75% 12-mo CD & 2.50% 9-mo CD at American Momentum Bank in TX & FL (account review)
  9. 2.75% 12-mo CD at First Asian Bank in Las Vegas (account review)
  10. 3.25% 24-mo CD at Jefferson Financial CU in Louisiana (account review)
  11. 3.10% 24-mo CD & 2.65% 6-mo CD at CoreFirst Bank at CO & KS (account review)
  12. 3.00% 24-mo & 2.65% 12-mo CD at LOMTO FCU in NY City (account review)
  13. 4.25% 60-mo CD & 2.50% 12-mo CD at Urban Trust Bank in FL & MD (account review)
  14. 4.07% 60-mo CD at United Community CU in IL & MO (account review)
  15. 4.00% 60-mo & 3.25% 24-mo & 2.75% 12-mo CD at Montauk CU in NY (account review)
Reward Checking Accounts

I reported on four new reward checking accounts this week with rates ranging from 4.01% to 4.50% APY (see below). One of these, First Security Bank & Trust, is offering its reward checking nationwide. It's a pretty standard reward checking with a 4.01% APY for balances up to $25K. Nevertheless, it's always nice to have another nationwide reward checking account especially as existing nationwide ones start being restricted. The latest example is at First Arkansas Bank & Trust which is no longer accepting California residents. I'm not sure why they chose California. With a 4.44% APY for balances up to $50K, I'm sure they will continue to see a large influx of deposits. So I wouldn't be surprised if we see other states added to the restricted list in the future.

To see all of the high yield reward checking accounts available throughout the nation, please refer to my High Yield Checking website.

Recap for the Week - Links to This Week's Posts

Banking News

Savings Accounts - National

CD Deals - National

Checking/Savings Bonuses

Reward Checking Accounts

CD and Money Market Deals - Local

The rates listed below are based on Annual Percentage Yield (APY). No minimum balances are required unless noted. MMA next to the rates indicate a money market account. Most MMAs have check writing and ATM cards. Online savings accounts usually lack both of these. The top lists include banks and credit unions with broad availability and with minimums around $10K or less. Previous weekly summaries are available at this page. Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, Bank alternatives CD Rates: 3 Mo CDs, 6 Mo CDs, 9 Mo CDs, 12 Mo CDs, 18 Mo CDs, 24 Mo CDs, 36 Mo CDs, 48 Mo CDs, 60 Mo CDs, 84 Mo CDs, CDs by state Comments: read and discuss

As of July 4, 2009

Checking/Savings/Money Market Accounts:


3-Month Certificates of Deposit:

6-Month Certificates of Deposit:

9-Month Certificates of Deposit:

12-Month Certificates of Deposit:

18-Month Certificates of Deposit:


24-Month Certificates of Deposit:

36-Month Certificate of Deposit:

48-Month Certificate of Deposit:

60-Month Certificate of Deposit:

84-Month Certificate of Deposit:

Various Deposit Account Deals


High Yield Reward Checking Accounts - Open to All


Recent CD Specials at Local Credit Unions and Banks


Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)

Post a CommentComments
In order of date posted. - Sort by votes
Anonymous

Anonymous - #1, Tuesday, July 7, 2009 - 8:45 AM

Looks like APY on PNC's "Growth" account, a component of the virtual wallet, has fallen from 2% to 1,75%. Things are tough all over.


1
CreditLendingBlog

CreditLendingBlog (anonymous) - #2, Thursday, July 9, 2009 - 8:16 AM

Seems like there are still a lot of good deals in the market. This is a very helpful post, thanks!


1

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